Be informed before deciding on the type of health insurance to go for!
Getting your financial plans in place in the early part of your adult life is very important. Buying the right kind of health insurance which suits you and your family best is an integral part of the financial planning.
There are different types of health insurance policies like individual mediclaim, family floater policy, and unit-linked health plan. You should choose a type of health insurance depending on your situation and the stage of life you are in.
Getting a health insurance is a must for everybody, we tell you more about the different type of health insurance plans.
In an individual mediclaim policy, every member of the family is covered separately whereas, in a family floater plan all members have one floater cover. For example, if all members of a family have an individual cover of Rs 10 lakh each then the policy is called individual mediclaim. If all the four members of a family are covered under a floating cover of Rs 10 lakhs then it is a family floater policy.
The flexibility of a floater policy works as an advantage. You can cover your entire immediate family by paying one premium and can take a complete claim for one member or split it between all according to your need.
In case there is a medical emergency in the family due to some accident or any other reason, then the family floater plan may not be able to cover the total costs. However, this is an exceptional situation, it seldom happens that all the family members need medical help at the same time. This is the only disadvantage of a family floater plan.
Unit-linked health plans or ULHP is a market-linked health plan. It is a combination of health insurance and market investment. There is a lot of debate on whether it is a good idea to go for a hybrid product like ULHIP. There are several drawbacks to this type of plan as it provides a fixed cover, irrespective of the cost of the treatment. Another major drawback is that there is no cashless facility. This means you have to dig into your savings while paying your medical bills and wait to be reimbursed later.
A ULHP is much costlier because of charges like fund management and premium allocation. Since the investment portion is unit linked, these kinds of policies have high upfront charges.
However, this type of plan cannot be a substitute for indemnity plans. It can at best supplement your primary health insurance plan—an individual mediclaim or a family floater plan.
Choose a health insurance which will take care of all kinds of medical emergencies. Whether it is cashless treatment or reimbursement, it should be your choice and not imposed by the health insurance plan.